SALESFORCE INC (CRM) Fundamental Analysis & Valuation

NYSE:CRM • US79466L3024

Current stock price

195.18 USD
-0.2 (-0.1%)
At close:
195.111 USD
-0.07 (-0.04%)
After Hours:

This CRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CRM Profitability Analysis

1.1 Basic Checks

  • CRM had positive earnings in the past year.
  • In the past year CRM had a positive cash flow from operations.
  • CRM had positive earnings in each of the past 5 years.
  • In the past 5 years CRM always reported a positive cash flow from operatings.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 6.64%, CRM is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 12.61%, CRM is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 9.59%, CRM belongs to the top of the industry, outperforming 84.53% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.92%.
  • The last Return On Invested Capital (9.59%) for CRM is above the 3 year average (8.16%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • The Profit Margin of CRM (17.96%) is better than 84.17% of its industry peers.
  • In the last couple of years the Profit Margin of CRM has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 21.47%, CRM belongs to the top of the industry, outperforming 89.21% of the companies in the same industry.
  • CRM's Operating Margin has improved in the last couple of years.
  • CRM has a better Gross Margin (77.68%) than 74.82% of its industry peers.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

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4

2. CRM Health Analysis

2.1 Basic Checks

  • CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for CRM has been reduced compared to 1 year ago.
  • Compared to 5 years ago, CRM has more shares outstanding
  • CRM has a worse debt/assets ratio than last year.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • An Altman-Z score of 2.85 indicates that CRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of CRM (2.85) is better than 64.75% of its industry peers.
  • The Debt to FCF ratio of CRM is 1.00, which is an excellent value as it means it would take CRM, only 1.00 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.00, CRM is doing good in the industry, outperforming 74.46% of the companies in the same industry.
  • CRM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.18, CRM perfoms like the industry average, outperforming 46.76% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.85
ROIC/WACC0.88
WACC10.9%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.76, CRM is doing worse than 86.33% of the companies in the same industry.
  • A Quick Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • The Quick ratio of CRM (0.76) is worse than 85.61% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. CRM Growth Analysis

3.1 Past

  • CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.16%, which is quite impressive.
  • Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.60% on average per year.
  • CRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.58%.
  • The Revenue has been growing by 14.34% on average over the past years. This is quite good.
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • CRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.19% yearly.
  • Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.78% on average per year.
EPS Next Y5.86%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
EPS Next 5Y12.19%
Revenue Next Year11.16%
Revenue Next 2Y10.32%
Revenue Next 3Y10.04%
Revenue Next 5Y9.78%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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6

4. CRM Valuation Analysis

4.1 Price/Earnings Ratio

  • CRM is valuated correctly with a Price/Earnings ratio of 15.55.
  • Compared to the rest of the industry, the Price/Earnings ratio of CRM indicates a somewhat cheap valuation: CRM is cheaper than 79.86% of the companies listed in the same industry.
  • CRM is valuated rather cheaply when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 14.69, CRM is valued correctly.
  • CRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRM is cheaper than 75.54% of the companies in the same industry.
  • CRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.55
Fwd PE 14.69
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 80.58% of the companies in the same industry are more expensive than CRM, based on the Enterprise Value to EBITDA ratio.
  • CRM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRM is cheaper than 85.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.51
EV/EBITDA 14.58
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • A more expensive valuation may be justified as CRM's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)2.65
PEG (5Y)0.76
EPS Next 2Y9.26%
EPS Next 3Y12.48%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CRM Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.90%, CRM is not a good candidate for dividend investing.
  • In the last 3 months the price of CRM has falen by -26.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.64, CRM pays a better dividend. On top of this CRM pays more dividend than 91.01% of the companies listed in the same industry.
  • With a Dividend Yield of 0.90, CRM pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.9%

5.2 History

  • CRM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • 21.28% of the earnings are spent on dividend by CRM. This is a low number and sustainable payout ratio.
DP21.28%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

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CRM Fundamentals: All Metrics, Ratios and Statistics

SALESFORCE INC

NYSE:CRM (3/23/2026, 8:04:00 PM)

After market: 195.111 -0.07 (-0.04%)

195.18

-0.2 (-0.1%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners84.15%
Inst Owner Change5.61%
Ins Owners2.57%
Ins Owner Change0.15%
Market Cap180.15B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.31
Price Target311.82 (59.76%)
Short Float %2.41%
Short Ratio1.73
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.24%
Min EPS beat(2)12.59%
Max EPS beat(2)23.9%
EPS beat(4)4
Avg EPS beat(4)10.15%
Min EPS beat(4)0.37%
Max EPS beat(4)23.9%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)7.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.62%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)-5.53%
PT rev (3m)-5.63%
EPS NQ rev (1m)3.85%
EPS NQ rev (3m)3.8%
EPS NY rev (1m)0.2%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)2.6%
Valuation
Industry RankSector Rank
PE 15.55
Fwd PE 14.69
P/S 4.34
P/FCF 12.51
P/OCF 12.01
P/B 3.05
P/tB N/A
EV/EBITDA 14.58
EPS(TTM)12.55
EY6.43%
EPS(NY)13.29
Fwd EY6.81%
FCF(TTM)15.6
FCFY7.99%
OCF(TTM)16.25
OCFY8.32%
SpS44.99
BVpS64.08
TBVpS-6.08
PEG (NY)2.65
PEG (5Y)0.76
Graham Number134.51
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.85
F-Score7
WACC10.9%
ROIC/WACC0.88
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
EPS Next Y5.86%
EPS Next 2Y9.26%
EPS Next 3Y12.48%
EPS Next 5Y12.19%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.16%
Revenue Next 2Y10.32%
Revenue Next 3Y10.04%
Revenue Next 5Y9.78%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.51%
EBIT Next 3Y17.62%
EBIT Next 5Y4.52%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


Can you provide the profitability details for SALESFORCE INC?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the valuation of SALESFORCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 15.55 and the Price/Book (PB) ratio is 3.05.


How financially healthy is SALESFORCE INC?

The financial health rating of SALESFORCE INC (CRM) is 4 / 10.